Construction Terminology

Construction Terms

Financial StatementA document which sets out the assets, income, expenses and debts of a person or company to allow a third person to assess that person or corporation's financial health (i.e. when considering lending money to that person or corporation).

Firm OfferAn offer to purchase delivered to the potential Vendor by a potential Purchaser who will not negotiate any changes to the offer.First LienThe registered legal claim which stands first in line to enjoy the proceeds of a sale of the property. Liens generally are ordered according to time or registration but various statutes allow some liens (realty taxes) to jump to the head of the line.

First RefusalThe ability to make an offer for a property before the owner puts it up for sale on the open market

FlipThe rapid turnover of a piece of property by one person who buys it for a certain price then sells it soon thereafter for more.

Free And ClearA description of title to property which is unencumbered and subject to no competing claims.

FemaFEMA stands for Federal Emergency Management Agency. FEMA is a government agency responsible for managing and providing aid in the event of a disaster in a certain part of the country.

First LienThe registered legal claim which stands first in line to enjoy the proceeds of a sale of the property. Liens generally are ordered according to time or registration but various statutes allow some liens (realty taxes) to jump to the head of the line.